Demand and Supply are most fundamental concepts of economics and it is the backbone of a market economy Demand refers to how much quantity of a product or service is desired by buyers ID: 1027570
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1. Demand and Supply
2. DemandDemand and Supply are most fundamental concepts of economics and it is the backbone of a market economy Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price;The relationship between price and quantity demanded is known as the demand relationship
3. The Law of DemandThe law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that goodHigher the price, the lower the quantity demandedThe slope of Demand curve is downward
4. Demand Curve
5. SupplySupply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship
6. The Law of SupplyLike the law of demand, the law of supply demonstrates the quantities that will be sold at a certain priceThe supply relationship shows an upward slope. This means that the higher the price, the higher the quantity supplied. Producers supply more at a higher price because selling a higher quantity at a higher price increases revenue.
7. Supply Curve